Checking Accounts, Credit Cards and Reports

The opening balance was $543.22, after the transactions from the table, what is the new account balance?

• $207.45

• $750.64

• $1,293.86

• $1,430.35

Jade uses $30 from her checking account to donate money to her favorite charity. Will this be a deposit or a withdrawal when she enters the information into her check register? Explain.

• Deposit; she put the money into her account.

• Deposit; she took the money out of her account.

• Withdrawal; she put the money into her account.

• Withdrawal; she took the money out of her account.

Tyler got a $140 refund. The refund is sent to his checking account. Will this be a deposit or a withdrawal when he enters the information into his check register? Explain.

• Deposit; he put the money into his account.

• Deposit; he took the money out of his account.

• Withdrawal; he put the money into his account.

• Withdrawal; he took the money out of his account.

Deanna has a balance of $324.55 in her checking account. She uses her debit card to pay $102.00 for a concert ticket. What is the balance in her checking account now?

• $102.00

• $222.55

• $324.55

• $426.55

Louis will spend $755.00 on a new kitchen sink. He will use his credit card to withdraw $800 cash to pay for the sink. The credit card company charges 4% interest on the borrowed amount. How much will Louis owe?

• $44

• $799

• $832

• $844

Identify the borrower least likely to be offered a loan, if the decision were solely based on his or her credit score.

• P. Lori

• S. Spade

• R. Como

• D. Panton

Identify the borrower most likely to be offered a loan at a lower interest rate, if the decision were solely based on his or her credit score.

• L. Strong

• S. Blake

• J. Bono

• G. West

Identify each statement as true or false.

Making late payments helps maintain a positive credit history.

• true

• false; Making late payments has no impact on credit history.

• false; Making late payments leads to a negative credit history.

• false; Making late payments are never indicated on a credit report.

Identify each statement as true or false.

Establishing a positive credit history allows you to borrow money for houses and cars.

• true

• false; Establishing a negative credit history allows you to borrow money for houses and cars.

• false; Your credit history has no impact on whether you will get a loan in the future.

• false; These purchases are relatively small and lenders will not check your credit history in these cases.

Determine the effects of using a debit card or a credit card for the purchase.

Gianna wants to buy a slow cooker that costs $65.00. She has $85.50 in her checking account.

• If Gianna uses her credit card, the amount will immediately be removed from her checking account and she will have a balance of $20.50. If she uses a debit card, she may have to pay interest but her checking account is not immediately affected.

• If Gianna uses her debit card, the amount will immediately be removed from her checking account and she will have a balance of $20.50. If she uses a credit card, she may have to pay interest but her checking account is not immediately affected.